In 2023, the presence of mobile wallets has become hard to ignore. A recent survey discovered that UK consumers prefer to pay via mobile wallets than the traditional cash method. This sets in motion a transitional phase in how consumers and businesses handle money due to the ever-increasing preference for mobile payments.
With the continuing rise in the use of mobile wallets, there’s been an increase in demand for more secure and efficient wallets. In this article, we will detail what a mobile wallet is, its pros and cons and how Trust Payments can help you implement this into your organisation.
Types of mobile wallets
Mobile wallets, at their core, are electronic devices or applications that allow users to store money and complete transactions digitally without the need for physical cards or cash. They range from dedicated apps on smartphones to digital accounts connected to a user’s bank.
Broadly, mobile wallets can be put in three categories:
Closed wallets
Offered by companies to let users make transactions only within their network or for their services.
Semi-closed wallets
These allow transactions with multiple merchants but do not permit cash withdrawal or redemption.
Open wallets
They function like a bank account, permitting purchases, peer-to-peer transfers, and cash withdrawals at ATMs.
2023 trends for mobile wallets
Crypto wallets
As cryptocurrencies like Bitcoin, Ethereum, and many others have continued their push into the mainstream, the rise of mobile wallets tailored to handle these digital assets has skyrocketed. These wallets allow users to store, receive, and send various cryptocurrencies from their mobile devices, making paying with cryptocurrency more accessible than ever before.
Biometric authentication
One of the prominent trends in mobile wallet security in 2023 has been the integration of biometric authentication. Whether it’s through fingerprint scanning, facial recognition, or even voice authentication, these security measures provide an added layer of protection against unauthorised access.
Multi-currency wallets
The global nature of business and travel demands solutions that can manage multiple currencies seamlessly. Certain mobile wallets in 2023 come with features that allow users to hold various currencies and convert between them effortlessly.
Security risks for mobile wallets
Whilst mobile wallets offer convenience, they are not without their challenges. Some of the security risks include:
Phishing attacks
Users might receive malicious links that masquerade as legitimate mobile wallet services, leading them to enter their credentials on fake platforms.
Malware and spyware
Malicious software can be installed on users’ devices, tracking keystrokes or stealing sensitive information.
Loss or theft of device
If a device is lost or stolen and isn’t adequately protected, unauthorised individuals might access the user’s funds.
Outdated software
Not updating the wallet app can leave vulnerabilities that hackers might exploit, leading to loss of funds or identity theft.
Key features for mobile wallets
User experience
A seamless and intuitive interface ensures users can conduct their transactions without any hitches, enhancing overall satisfaction.
Regulatory compliance
As digital transactions are subject to various local and international standards, ensuring compliance is crucial. This includes compatibility with 3DS level 1 and level 2 standards.
Subscription payments
Enabling businesses to set up recurring payments ensures a consistent revenue stream and convenience for both the service provider and the consumer.
Card-saving features
For returning customers, the ability to save card details and use them for future transactions significantly reduces friction and promotes repeated business.
Card-saving features
By tokenising card data, digital wallets simplify the process of complying with PCI security regulations, which is crucial for businesses as it adds a further layer of security.
Support
Reliable customer support ensures users’ concerns and queries are addressed promptly, fostering trust in the service.
Mobile wallets have undeniably transformed the financial landscape in 2023. Their rise underscores the global transition to digital and cashless transactions, driven by the demand for convenience and enhanced security features. With an array of benefits, from facilitating crypto transactions to simplifying global business, mobile wallets are here to stay.
Trust Payments stand out in this dynamic ecosystem. Their mobile payment platform guarantees a stellar user experience with an optimised in-app payment journey. Not only is it compliant with pivotal payment standards, but it also offers unique features such as recurring payments, compliance with 3DS level 1 and 2 standards, and round-the-clock support. As the digital landscape evolves, platforms like Trust Payments will lead the charge, setting standards for others to follow.
Embrace the adoption of a mobile payment solution today and experience seamless, secure transactions. Get in touch and learn more about your payment options.
